EntreMed To Raise $10.7 Million In Registered Direct Offering

        EntreMed To Raise $10.7 Million In Registered Direct Offering

PR Newswire

ROCKVILLE, Md., March 1, 2013

ROCKVILLE, Md., March 1, 2013 /PRNewswire/ --EntreMed, Inc. (Nasdaq: ENMD), a
clinical-stage pharmaceutical company developing therapeutics for the
treatment of cancer, announced today that it has received commitments from
investors, including institutional investors Kleiner Perkins Caufield Byers
China Fund II, L.P. and IDG-Accel China Growth Fund III L.P. to purchase
approximately $10.7 million of securities in a registered direct offering.
EntreMed expects to receive net proceeds of approximately $10.3 million after
deducting agent's fees and other offering expenses. EntreMed has agreed to
sell an aggregate of 4,495,833 shares of its common stock and warrants to
purchase 2,247,917 shares of its common stock. Each unit, consisting of one
share of common stock and a warrant to purchase 0.5 share of common stock will
be sold for a purchase price of $2.40. The warrants will become exercisable
181 days after the closing and have a term of three years and an exercise
price equal to the market value per share of common stock on February 28,
2013. The offering is expected to close on or about March 6, 2013, subject to
satisfaction of customary closing conditions.

(Logo: http://photos.prnewswire.com/prnh/20010620/ENMDLOGO)

"We are very pleased to have the support of this group of strategic
investors. We intend to use the net proceeds from this offering to advance
our clinical development plan, including additional trials for ENMD-2076, and
for general corporate purposes," said Dr. Ken Ren, the Company's Chief
Executive Officer.

Burrill Securities LLC acted as exclusive placement agent in this
transaction. A shelf registration statement containing a prospectus relating
to the shares of common stock and warrants to be issued in this transaction
(and the shares of common stock issuable upon exercise of the warrants) has
been filed with the Securities and Exchange Commission (the "SEC") and
declared effective. A prospectus supplement relating to the offering will be
filed by EntreMed with the SEC. Copies of the prospectus and prospectus
supplement and accompanying prospectuses may be obtained directly from Burrill
Securities LLC, Prospectus Department, One Embarcadero Center, Suite 2700, San
Francisco, CA 94111, 415-591-5400 or email: wwang@b-c.com. This announcement
is neither an offer to sell nor a solicitation of an offer to buy any
securities of EntreMed. No offer, solicitation or sale will be made in any
jurisdiction in which such offer, solicitation or sale is unlawful.

About EntreMed

EntreMed, Inc. is a clinical-stage pharmaceutical company employing a drug
development strategy primarily in the United States and China to develop
targeted therapeutics for the global market. Its lead compound, ENMD-2076, a
selective angiogenic kinase inhibitor, has completed several Phase 1 studies
in solid tumors, multiple myeloma, and leukemia, and is currently completing a
multi-center Phase 2 study in ovarian cancer. EntreMed recently announced the
initiation of a Phase 2 study of ENMD-2076 in triple-negative breast cancer
and the initiation of a Phase 2 study of ENMD-2076 in advanced/metastatic soft
tissue sarcoma. Additional information about EntreMed is available on the
Company's web site at www.entremed.com and in various filings with the SEC.

About ENMD-2076

ENMD-2076 is an orally-active, Aurora A/angiogenic kinase inhibitor with a
unique kinase selectivity profile and multiple mechanisms of action.
ENMD-2076 has been shown to inhibit a distinct profile of angiogenic tyrosine
kinase targets in addition to the Aurora A kinase. Aurora kinases are key
regulators of mitosis (cell division), and are often over-expressed in human
cancers. ENMD-2076 also targets the VEGFR, Flt-3 and FGFR3 kinases which have
been shown to play important roles in the pathology of several cancers.
ENMD-2076 has shown promising activity in Phase 1 clinical trials in solid
tumor cancers, leukemia, and multiple myeloma. ENMD-2076 is currently
completing a Phase 2 trial for ovarian cancer. EntreMed, Inc. recently
initiated a dual-institutional Phase 2 study of ENMD-2076 in triple-negative
breast cancer.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act with respect to the outlook or
expectations for future financial or business performance, strategies,
expectations and goals. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made, and no duty to update
forward-looking statements is assumed.

Actual results could differ materially from those currently anticipated due to
a number of factors, including: the risk that we may be unable to continue as
a going concern as a result of our inability to raise sufficient capital for
our operational needs; the possibility that we may be delisted from trading on
the Nasdaq Capital Market; the volatility of our common stock; the difficulty
of executing our business strategy in China; our inability to enter into
strategic partnerships for the development, commercialization, manufacturing
and distribution of our proposed product candidate; risks relating to the need
for additional capital and the uncertainty of securing additional funding on
favorable terms; declines in actual sales of Thalomid® resulting in reduced
royalty payments; risks associated with our product candidates; any
early-stage products under development; results in preclinical models are not
necessarily indicative of clinical results; uncertainties relating to
preclinical and clinical trials, including delays to the commencement of such
trials; the lack of success in the clinical development of any of our
products; dependence on third parties; and risks relating to the
commercialization, if any, of our proposed products (such as marketing,
safety, regulatory, patent, product liability, supply, competition and other
risks). Such factors, among others, could have a material adverse effect upon
our business, results of operations and financial condition. We caution
readers not to place undue reliance on any forward-looking statements, which
only speak as of the date made. Additional information about the factors and
risks that could affect our business, financial condition and results of
operations, are contained in our filings with the SEC, which are available at
www.sec.gov.

COMPANY CONTACT:
Investor Relations
EntreMed, Inc.
240.864.2643
investorrelations@entremed.com



SOURCE EntreMed, Inc.

Website: http://www.entremed.com
 
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